Oriental Watch (398) H2 2025 earnings summary

Executive summary

• Revenue declined 5.2% year-over-year to HK$3,450 million, reflecting macroeconomic headwinds and weaker luxury demand.

• Profit attributable to owners dropped 20.0% to HK$200 million, impacted by a one-off impairment charge of HK$25 million and rising operating costs.

• Adjusted profit excluding the one-off impairment was HK$225 million.

• Final dividend of 4.2 HK cents and special dividend of 12.5 HK cents per share proposed.

Financial highlights

• Gross profit fell 5.6% to HK$1,086 million; gross margin slightly decreased to 31.5%.

• Earnings per share was 41.14 HK cents, down from 51.40 HK cents year-over-year.

• Net current assets stood at HK$1,307 million; cash and cash equivalents at HK$836 million.

• No bank loans; gearing ratio remains nil.

Outlook and guidance

• Ongoing market uncertainty and declining Swiss watch exports to China and Hong Kong signal a cautious outlook for the luxury watch sector.

• Focus remains on operational efficiency, prudent cost management, and optimizing store network.

• Board remains committed to balancing growth and sustainable shareholder returns.